A quick question

[cornishteddyboy]

Just watched the trailer for the Piran Films DVD re Truro going into Administration.

The question I have is:

Who is liable of the Administrators Fees?

Is it the previous owners/management set-up who called them in or are any potential new owners liable and the fee is included in the take-over price of the club?

Only wondering as nothing seems to have happened for several weeks now regarding the take-over of the club but the Administrator's fees must be mounting weekly making it more expensive to take-over the club if that is how the fees are paid.

[Argyle Fan]

I think the administrators would normally be paid out of any cash in the business at the time of their appointment plus any generated during the administration.

From what I've read there doesn't appear to be much / any cash so the costs will fall on the new owners - this is what happened at Home Park.

If it should come to liquidation then I think I'm right in saying that the Administrators / Liquidators are first in the queue for any proceeds from the sale of the assets.

[cornishteddyboy]

So if the bill for the administrators was say £100,000 and assets make £20,000 who pays the balance or do the administrators take the job on in the first place knowing they may not get paid in full?

[Cornish-Ref]

The administrators have first claim on monies owed. There is also a pot of cash associated to company insolvencies held at the HMRC that I am aware of or somewhere else, so they are all but guaranteed to get (or a good portion) of their money. Other Creditors then line up........ players owed wages, staff etc....